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Buy to Let possible?

Options
I have a large chunk of money saved up, enough for at least 25% deposit on a property, however I am a contractor so I think I will be unable to prove I have a steady income as I have only been doing my current job for 3 months.

I would like to buy a 2 bedroom property so if worst came to worst I could let it out to cover the mortgage (maybe rent one room out and live there while I am working).

However I am a first time buyer so will this be impossible?

I should have a good/excellent credit score

Comments

  • Caz3121
    Caz3121 Posts: 15,832 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If you are planning to live in it initially then you are not looking for a BTL but for a residential mortgage. If further down the line you look to rent it out then you would ask for consent to let or change to a BTL mortgage

    How many years accounts do you have
  • Liquidity
    Liquidity Posts: 74 Forumite
    Part of the Furniture Combo Breaker
    But I would want to rent 1 room out straight away - can I not go down the BTL route from the beginning?
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Liquidity wrote: »
    But I would want to rent 1 room out straight away - can I not go down the BTL route from the beginning?

    No because you are planning on living there. Is the BTL route a way to circumvent affordability? If so it is not a good idea and likely to fail anyway.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • kingstreet
    kingstreet Posts: 39,256 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    No, you can't.

    Having a lodger is not letting the property. Lenders will be looking for a single let on an assured shorthold basis. You will have difficulty finding a BTL product for a non-owner occupier as lenders are wise to those trying to circumvent the income rules for residential mortgages.

    For example, many who have lately become self-employed can't provide the required evidence of income, so they go the BTL route to get around it, then they live in the property. It may not be fraud, as such, but it's certainly deception.

    You need a residential mortgage as you intend to occupy the property.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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